95% sales rise expected at Boohoo

2595
Boohoo

Boohoo is set to post skyrocketing sales in its full-year results later this week, as analysts anticipate its heavy infrastructure investment to nearly double figures.

According to City AM, the City has predicted the fast fashion retailer will report 95 per cent sales growth topping £547.6 million, with pre-tax profits of £47 million.

These lofty projections are largely due to Boohoo’s ballooning investment in infrastructure, setting aside £62 million this year. This number is predicted to rise to £106 million throughout 2019.

PrettyLittleThing, which is owned by Boohoo alongside Nasty Gal, is also expected to have boosted sales throughout the year and as a relatively young brand represents Boohoo’s biggest opportunity for further growth.

Some analysts feel differently, however. RBC Markets expressed doubt in the retailer’s potential for growth earlier this month, sending its share prices to a 13-month low.

The Canadian Bank’s downgrading of Boohoo’s share price from 160p to 125p continued an ongoing downward trend in its share price over the last three months, dropping a total of 34.35 per cent.

Click here to sign up to Retail Gazette‘s free daily email newsletter